When you're selling your home in Arizona, there is quite a bit of paperwork involved. One document that often catches sellers by surprise is the insurance claims history report , sometimes called a loss history report. I recently had a seller ask me, "Why does the buyer need to know about my homeowners insurance claims?" It's a fair question. After all, the seller is moving out, and the buyer will be getting their own insurance policy. But here's what many homeowners don't realize: Your home's insurance claims history can affect the next owner's ability to insure the property, even though they weren't the ones who filed those claims. And for sellers, there is another important reason to get this report completed quickly. Delivering it late could give your buyer another opportunity to cancel the purchase contract. Let's break down what Arizona homeowners need to know. What Is an Insurance Claims History Report? An insurance claims history report is a record of insurance claims associated with your property during a specific period. It may show claims involving: Roof damage from storms or hail Water damage from plumbing leaks Fire or smoke damage Theft or vandalism Other property damage reported to your insurance company One commonly used insurance claims database is called C.L.U.E., which stands for Comprehensive Loss Underwriting Exchange. Insurance companies can use claims history when deciding whether to insure a property and how much to charge. And that's where things get interesting for buyers. Why Does the Buyer Care About My Insurance Claims? Imagine you're buying a home, and everything looks great. The inspection goes well, the appraisal comes in at value, and you're excited to move forward. Then you call your insurance company. Unfortunately, they discover the property has had several water damage claims over the past few years. Now the insurance company wants to charge significantly more than expected, or perhaps they aren't willing to insure the home at all. That's a pretty big problem. Most buyers purchasing with a mortgage are required to carry homeowners insurance. If they can't obtain acceptable coverage, their financing and ability to purchase the home could be affected. Even cash buyers should be concerned about purchasing a property that is difficult or extremely expensive to insure. A home's claims history doesn't disappear simply because the ownership changes. That doesn't mean one insurance claim will make a home uninsurable. Insurance companies consider several factors, including the type of claim, how often claims occurred, and whether the underlying problems were corrected. But buyers deserve the opportunity to investigate those issues before committing to the purchase. Is an Insurance Claims History Report Required in Arizona? Yes. Under Section 4b of the standard Arizona REALTORS® Residential Resale Real Estate Purchase Contract, the seller is required to provide a written insurance claims history. The good news is that you don't need to track down every insurance claim you've ever made. The requirement covers: Five years of claims history if you've owned the home for five years or longer. Your actual ownership period if you've owned the home for less than five years. For example, if you purchased your home three years ago, you only need to provide the claims history covering those three years. And if you've owned your home for 20 years, you generally only need to go back five years. What If I've Changed Insurance Companies? This is something sellers frequently overlook. Let's say you've owned your home for ten years, but during the past five years you've had three different insurance companies. Getting a report from your current insurance company may not tell the whole story. You need to account for the claims history covering the entire required period, which may mean contacting previous insurance companies as well. At Rover Realty, we encourage sellers to start gathering this information before their home goes under contract. Why? Because finding out you need information from an insurance company you haven't used in four years can cause unnecessary delays. And those delays can create a bigger problem. Why Is It So Important to Deliver the Insurance Claims History on Time? This is probably the most important part of this entire discussion for Arizona home sellers. Under the standard Arizona residential resale purchase contract, sellers are required to provide the insurance claims history within five days after contract acceptance . But here's what many sellers don't realize. The buyer has until the end of their inspection period OR five days after receiving the insurance claims history, whichever is later, to give notice of any claims history items they disapprove of. Let's look at an example. Your buyer has a ten-day inspection period. Everything goes well, and the buyer completes their inspections. You're feeling pretty good about moving toward closing. But you forgot to provide the insurance claims history. On day 14, you finally get the report and send it to the buyer. Under the contract, the buyer now has five days after receiving that report to review it and raise objections to items in the claims history. Depending on the circumstances and the applicable contract provisions, that could allow the buyer to cancel the transaction and recover their earnest money. Think about that. You could be well past the original inspection period and still have a buyer with an opportunity to cancel because a required document was delivered late. That's not a position I want our sellers to be in. And it's exactly why we work to get these documents completed and delivered as early as possible.  What If I've Never Filed an Insurance Claim? Great! This is usually the easiest situation. Even if you've never filed a homeowners insurance claim, you still need to provide the required written claims history. In most cases, you can simply contact your insurance agent and request a five-year loss history report . If you've had no claims, the insurance company will often send you an email or letter on company letterhead that includes your policy number, property address, and confirmation that no claims were filed during the requested period. You can then forward that information to your real estate agent, who can provide it to the buyer's agent. It's generally a quick and simple process, especially if you've had the same insurance company for the entire five years. Just remember, if you've changed insurance companies during that time, you'll need to account for the coverage periods with your previous insurers as well. My advice? Request this information as soon as you start preparing to sell your home. That way, it's one less thing to worry about once you're under contract. How Do I Get My Home Insurance Claims History? For most sellers, the easiest place to start is with their homeowners insurance agent or insurance company. Ask for a written property insurance claims history covering the past five years, or however long you've owned the home if less than five years. If you've changed insurance companies during that period, make sure the full required timeframe is covered. And remember, if you've never filed a claim, the report may be as simple as an email from your insurance company confirming that there have been no claims. Don't wait until the buyer is halfway through inspections to start making those calls. Frequently Asked Questions Can a buyer see insurance claims from before I owned the home? Insurance companies may have access to property claims history that predates your ownership. However, the standard Arizona purchase contract only requires you to provide the history covering the past five years or your ownership period, whichever is shorter. Will one insurance claim make my home harder to sell? Not necessarily. One claim, especially when the damage was properly repaired, doesn't automatically create an insurance problem. Multiple claims or repeated problems may raise more concerns. Can the buyer cancel because of something on the insurance claims report? Potentially, yes. The Arizona purchase contract gives buyers a specific period to review and disapprove of items in the claims history. Whether cancellation and return of earnest money are available depends on the contract and proper notice. Do I need the report if I have never filed a claim? Yes. However, it can be as simple as an email or letter from your insurance company confirming there have been no claims during the required period. Ideally, it should include the insurance company's letterhead, your policy number, and the property address. Can I just tell the buyer I've never filed a claim? The contract calls for a written report from an insurance company or other permitted source. A seller-provided written history is allowed when the information is unavailable from those sources. What if I had three different insurance companies during the past five years? You'll need to make sure the required claims history covers that entire period. That may involve requesting records from more than one company. Selling Your Arizona Home? The Small Details Matter. When we help homeowners sell throughout Mesa, Gilbert, Chandler, Queen Creek, San Tan Valley, Apache Junction, and the surrounding East Valley, our job involves a lot more than putting a sign in the yard and finding a buyer. It's also about understanding the contract, staying ahead of deadlines, and recognizing the little things that can turn into big problems. An insurance claims history report may seem like just another piece of paperwork, but getting it handled early can help protect your transaction. If you're thinking about selling your Arizona home, we'd be happy to walk you through what to expect and how we prepare our sellers for a successful sale. Contact Rover Realty to schedule a discovery call.